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PAYMENT NOT RECEIVED FOR GOODS SUPPLY

Ganesh Keshri (Business) (73 Points)

26 April 2021

I SUPPLIED GOODS TO ONE PARTY IN AUG 2017 AND PAYMENT NOT RECEIVED TILL DATE. THE CASE IS FILED IN THE LOCAL COURT FOR CHEQUE DISHONOR. SHOULD I RAISE CN FOR ITC REVERSAL NOW? WHAT TO DO IN THIS SITUATION. PLEASE HELP.

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4 Replies

CMA Poornima Madhava (CMA) (13112 Points)
Replied 26 April 2021

Since the matter is sub judice, no reversal to be done now I think. I assume you are referring to the ITC reversal for the customer.

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CA. Sourav Sarkar (Chartered Accountant ) (24588 Points)
Replied 26 April 2021

If payment not received within 180 days then the buyer have to pay such ITC taken added with the output tax liability

VINI PATNI (Partner Designate) (30 Points)
Replied 27 April 2021

GST Credit Note can be issued only till Sept 2018 for invoice dated in FY 2017-18. No relief for seller under GST. However, buyer is liable to reverse ITC along with interest from the date of invoice.

Lotus Agrawal (Practice) (1361 Points)
Replied 27 April 2021

The goods supplied has not been returned. Only payment has not been made. The buyer should automatically reverse ITclC after 180 days. you are not required to issue a CN.